Suppose Stuart Company had the following cash flow results for 2017: Net Cash Flow from Operating...

Suppose Stuart Company had the following cash flow results for 2017:

Net Cash Flow from Operating Activities of $5,800,000

Net Cash Flow from Investing Activities of -$4,900,000

Net Cash Flow from Financing Activities of $700,000

Create a statement of cash flows with amounts in thousands.

What is the Net Cash Flow? Please specify your answer in the same units as the statement of cash flows.

Solutions

Expert Solution

So as a part of General Understanding

Operating Activities: This statement provides information about the cash generated from a company’s daily operating activities. Operating activities are those which produce either revenue or are the direct cost of producing a product or service.

Investing Activities:Investing activities include buying and selling noncurrent assets which will be used to generate revenues over a long period of time; or buying and selling securities not classified as cash equivalents.

Financial Activites: Financing activities include borrowing and repaying money, issuing stock (equity) and paying dividends.

(for the year ended 2017)

Calculation of Cash flow for Stuart Company Amount in thousands

Cash Flow - Operating Activities $5,800

Cash Flow - Investing Activities - $4,900

Cash Flow - Financing Activities $700

Total Output

Net Cash Flow $1,600

So the NET CASH FLOWS refers to the difference between a Company's cash inflows & outflows in a given period.

ekkarill92 answered 1 year ago

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